REPRESENTATION

1. What is representation?
SECTION. 36. A representation may be oral or written.
REPRESENTATION
- statement made by the insured at the time of, or prior to, the issuance of policy,
relative to the risk to be insured, as to an existing or past fact of state of facts, or
concerning a future happening to give information to the insurer and otherwise
induce him to enter into the insurance contract.
- may also be made by the insurer
MISREPRESENTATION - a statement :
1. as a fact of something which is untrue
2. which the insured stated with knowledge that is untrue with an intent to deceive,
or which he states positively as true without knowing it to be true and which has a
tendency to mislead, and
3. where such fact in either case is material to the risk
FORM AND NATURE OF REPRESENTATION
1. Information given concerning risk
2. Forms basis of contract
3. Intended as collateral inducements
2. When may a representation be made?
SECTION 37. A representation may be made at the time of, or before,
issuance of the policy.
The very nature of representation requires that it precede the execution of the
contract.
3. How should a representation be made?
4. How should a representation be construed?
SECTION 38. The language of a representation is to be interpreted by the same rule
as the language of contracts in general.
5. Forms and kinds of representation
- is it part of the contract?
- can it be withdrawn or altered?
Section 41. A representation may be altered, or withdrawn before the insurance is
effected, but not afterwards.
- date that a representation is referred
Section 42. A representation must be presumed to refer to the date on which the
contract goes into effect.
6. When is representation false?
Section 43. A representation is to deemed false when the facts fail to correspond
with its assertions or stipulations.

7. Effect of representation
Section 45. If a representation is false in a material point, whether affirmative or
promissory, the injured party is entitled to rescind the contract from the time when
the representation became false. The right to rescind granted by this Code to the
insurer is waived by the acceptance of premium payments despite knowledge of the
ground of rescission.

Section 46. The materiality of representation is determined by the same rules as the
materiality of a concealment.